According to the Commodity Market Analysis System of the Business Society, the domestic asphalt market in May was organized in a narrow range. From May 1st to 30th, the average price of asphalt producers in Shandong Province decreased from 3806 yuan/ton to 3771 yuan/ton, a decrease of 0.93%, and the price decreased by 19.87% year-on-year.

At the beginning of the month, due to the significant drop in international crude oil during the holiday, Sinopec prices were adjusted, and the main business in the southern region was lowered by 100-150 yuan/ton. The atmosphere of spot trading is average, and actual transactions are mostly at low levels. Sorting out the weak market situation of asphalt. In the early part of this month, due to the impact of international crude oil prices, cost support was strengthened. In addition, some regions experienced tight supply, and prices in Shandong and North China increased significantly, driving the overall upward trend of asphalt prices. In the latter half of the month, the positive factors came to an end, and international crude oil prices were weak and volatile, with weakened cost support. At the same time, due to recent heavy rainfall and limited actual market demand, the asphalt spot market was weak and organized.

On the cost side, the international oil market was mixed. In the first ten days of this month, the problem of the US debt ceiling raised investors’ concerns about the economic outlook. In addition, the increase in the number of Americans applying for unemployment benefits put pressure on the oil market. The increase in the US crude oil inventory depressed the international oil market. In late September, the US debt ceiling negotiation was a good rumor, and the oil market was boosted by the unresolved question of whether OPEC+, an oil producing country, would cut production. The domestic oil industry chain product market has been affected by market fluctuations and consolidation.

In terms of supply, the main production enterprises are Panjin Beili, Lunte, and Kaiyi, which have stable production. Wusu Mingyuan has intermittently resumed production, and Qilu Petrochemical has switched to asphalt production. According to the Commodity Market Analysis System of the Business Society, the comprehensive operating rate of the asphalt industry has increased month on month, and there is a negative impact on the supply side.

On the demand side, the demand for asphalt in the market is relatively flat, with varying demand in different regions. Some regions consume early stage resources, while rainfall in some regions leads to a decrease in downstream operating rates and a decrease in asphalt consumption. The overall demand side of the asphalt market is biased towards bearish effects.

According to future predictions, there are slight differences in the performance of various regions in the domestic asphalt market, and the situation will continue to be strong in the north and weak in the south. Business Society asphalt analysts predict that the domestic asphalt market will mainly maintain consolidation in the short term.